NiReMS: A Regional Model at Household Level Combining Spatial Econometrics with Dynamic Microsimulation

Arnab Bhattacharjee, Adrian Pabst, Tibor Szendrei and Geoffrey J. D. Hewings

No 547, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: The heterogeneous spatial and individual impacts of the Great Recession, Brexit and Covid-19 have generated an important challenge for macroeconomic and regional/spatial modellers to consider greater integration of their approaches. Focusing on agent heterogeneity at the NUTS-1 level, we propose NiReMS – a synthesis of dynamic microsimulation with a spatial regional macroeconometric model. The model gives regional macro projections while allowing for household level inference. To showcase the model, we explore the impact of terminating enhanced Universal Credit (UC) early and show that it led to more households consuming less. Importantly, the proposed framework shows that the impact is not equal across the regions of the UK: low asset households in the North East, Wales, and Northern Ireland were hit particularly hard.

Keywords: Microsimulation; Heterogenous Agents; Universal Credit; Spatial econometrics; Structural macroeconomic models (search for similar items in EconPapers)
JEL-codes: D15 D31 D6 E65 (search for similar items in EconPapers)
Date: 2023-02
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.niesr.ac.uk/wp-content/uploads/2023/02 ... S-Regional-Model.pdf

Related works:
Journal Article: NiReMS: A regional model at household level combining spatial econometrics with dynamic microsimulation (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:547

Access Statistics for this paper

More papers in National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research 2 Dean Trench Street Smith Square London SW1P 3HE. Contact information at EDIRC.
Bibliographic data for series maintained by Library & Information Manager ().